Eversheds says shareholder powers over top pay will ease investor discomfort

Philip Davies, a partner specialising in employment law at Eversheds, has said that the recent provisions requiring the annual directors’ remuneration report to include a future remuneration policy report will ease investor discomfort. 

Davies added that, while discontent over top pay and bonuses has been growing for some time and investor disquiet has been evident, the reforms are intended to promote transparency and empower shareholders to have a say in salary and bonus arrangements for top executives at public-listed companies.

He added that the changes will provide those shareholders with a binding vote at least every three years on the remuneration policy, covering the company’s policy for the future on remuneration payments and payments for loss of office.